Bitcoin (BTC) is targeting $37,000 when Wall Street opens on November 14 as the latest U.S. inflation data comes in lower than expected.
CPI surprises Bitcoin, stocks
Data comes from Cointelegraph Markets Pro and trading view Showing a strong return in BTC prices, as the Consumer Price Index (CPI) reflected slower inflation in October.
CPI was lower than market forecast by 0.1% year-on-year and quarter-on-quarter. The annual change was 3.2%, while core CPI was 4.0%.
“The All Projects Index rose 3.2% in the 12 months to October, down from 3.7% in the 12 months to September,” Official press release Confirmed from the U.S. Bureau of Labor Statistics.
“The all-item index excluding food and energy rose 4.0% over the past 12 months, the smallest 12-month change since the end of September 2021.”
Compared with the previous month, the consumer price index was only an inflation indicator and exceeded the market consensus, and the situation was significantly different. Wall Street responded enthusiastically immediately after the opening, with the S&P 500 index rising 1.5% on the day.
“This is the 31st consecutive month that inflation has been above 3%. However, inflation appears to be falling again,” financial commentary resource “Kobeissi Letter” wrote is part of the reaction.
Corbicci, who has traditionally been skeptical of Fed policy in the current inflationary environment, still called the report a “good” result.
Meanwhile, consistent with other recent consumer price index (CPI) releases, Bitcoin reacted modestly, re-touching intraday lows before rising to $37,000, but remaining range-bound.
However, when analyzing the market composition, on-chain monitoring resource Material Indicators noted that liquidity is generally thin — a key factor exacerbating volatility.
The report added that retail investors are increasing their Bitcoin exposure as whales remain silent on exchanges.
“It’s no coincidence that the two smallest order categories are buying,” it commented alongside a print of BTC/USDT order book liquidity on the world’s largest exchange, Binance.
“Upside liquidity around the active trading zone is very thin, and whales are unable to place large orders without experiencing significant slippage. Smaller order classes on FireCharts CVD hold BTC higher as support strengthens above $36,000 .”
Analyst: Accept Bitcoin price correction
Bitcoin price action, down about 4% from its 18-month high earlier this month, still impresses market participants who believe that a dip in a broader uptrend is not only standard but also is appropriate.
Related: Bitcoin institutional inflows set to top $1 billion in 2023 due to tight BTC supply
“Bitcoin has fallen 4.5% from its highs; the bullish correction is normal and healthy,” said James Van Straten, research and data analyst at cryptocurrency insights firm CryptoSlate. Tell There are X subscribers that day.
“Losses of up to 20% can occur due to profit taking or liquidation. This is normal and has occurred in previous cycles.”
van straten designation CryptoSlate Analysis Starting on November 13, this suggests that a larger correction in BTC prices is still possible given that BTC/USD has gained 120% year-to-date.
He emphasized: “It is worth noting that market adjustments are a normal part of any financial cycle and contribute to the overall health of the market.”
In an interview with Cointelegraph, Filbfilb, co-founder of the trading suite DecenTrader, also predicted that Bitcoin may fall significantly before the block subsidy halving event in April 2024.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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